Following that letter, the firm cancelled 160 corporate retreats, seminars and other events with prices as high as $750,000 per venue. One past event was a partridge hunt that cost $90,000. AIG and the Attorney General issued a joint statement memorializing the agreement which also included the cancellation of a $10,000,000 compensation package to the firm's chief financial officer.
Subsequently, the Attorney General sent AIG a second letter on Oct. 22 acknowledging that the firm agreed that it would make no bonus or deferred compensation disbursements from a fund of $600 million set aside for the executives of a financial subsidiary whose actions had contributed to the firm's collapse.
"I find it hard to conceive of a situation where you could justify a performance bonus for management that virtually bankrupted the company," Cuomo said in a conference call with reporters at the time.
Today AIG announced a number of additional restrictions on compensation. Those included:
A funding structure to ensure that no taxpayer dollars are used for annual bonus or future cash performance awards for AIG's "Senior Partners," the top 60 members of management.
Paula Rosput Reynolds, Vice Chairman and Chief Restructuring Officer, who joined AIG in October, will receive no salary or bonus whatsoever in 2008.
In 2009 and beyond, other than Reynolds base salary, any other compensation she receives will be tied directly to the progress of the restructuring efforts.
AIG's Senior Partners will not earn long-term performance awards in 2008. Furthermore, they will not receive salary increases in 2009, and their 2008 and 2009 annual bonuses will be limited. In addition to Mr. Liddy foregoing any severance payments, there will be restrictions on severance payments to members of this management group, which exceed TARP severance restrictions.